Couples go through a hard time during the divorce process, and the sale of assets before the divorce is one of the things they may consider doing. When determined to sell your home and other assets before the divorce while at Texas you will need to consider the laws that govern the sale of marital assets before the divorce.
Within Texas, there exists two kinds of debts and property owned by married spouses.
1. Community property
In this, case every debt or property either of the spouses owes or owns is presumed by the law to be community debt community property of the couple except when the spouse has clear evidence proving otherwise. Community property includes interest, rent or rent earned on a separate property and all the properties including wages except separate properties acquired by either spouse during the marriage.
2. Separate Properties
Separate properties include property exchanged from other separate properties, personal injury damage awards in the exemption of loss of earnings, gifts or inheritance from either the spouse or other people, and anything owned before marriage including its appreciation.
Steps to division of debts and property in Texas
There are three steps involved in the debts and property division on divorce
1. Characterizing the property and debts into either separate or community properties.
2. Determining the value of the properties and debts, and in case the spouses do not agree on the value of a property they can get a professional appraiser like real estate broker to put the value of the property for them before they sell the house.
3. How the division will take place between the spouses for the properties and debts.
Factors that determine the just and right division of property in Texas
a. Who holds the fault in the breakup of marriage
b. The attorney fees of the parties
c. The capabilities and abilities of either spouse
d. The spouses business opportunities
e. Spouses relative physical conditions
f. Spouses education level
g. Spouses relative financial conditions
h. Spouse separate estate different size
i. Property to be divided nature
j. The length of the marriage
k. Whether the primary physical custody of the minor children is granted to one spouse
l. The differences I income or earning capabilities of the spouse
m. The benefits either spouses would by default get from the continuity of marriage
Factors that would lead to a spouse advocating for uneven division of properties
a. Waste of community asset or dissipation
b. The tax implication of the proposed division
c. Gift by the spouse to individuals outside the marriage
d. Increase of separate property because of other spouse’s effort
e. Credit for temporary spousal support paid
f. Community liabilities and debts
g. Investment of separate property in the community estate
How to make the divorce less stressful about the division of properties and debts
1. Keeping emotions at bay during the divorce process
Do not let emotions get on your way during the divorce for being spiteful can result in harming your pocketbook. You need to be aware of the expense of divorce process. It is usually very dear making witty petitioners pick their battles wisely.
2. Know that everything is subject to division.
During the divorce, aside from selling their home, everything is practically divisible including debts and liabilities. Thus, couples should consider all that in their financial planning.
3. Making big purchases before filling for a divorce
In Texas, the state offers economic restraining orders on significant acquisitions during the divorce process. It is therefore advisable for the spouses to make the big purchases, for instance buying a car before filling for a divorce.
4. Keeping track of the spouse’s money
When considering divorce, a spouse should keep a keen eye on the spouse financial situation. Get hold of the list of all assets and the necessary documents proving ownership and value to provide to the attorney. The list of properties may include IRAs, safety box contents, retirement and pension accounts, stocks and bonds, and certificate of deposits and money market accounts.
5. No hiding of Assets
In case the spouse discovers hidden assets, they can ask for help from the courts. This can result in the courts punishing the spouse for fail to disclosure by awarding 50-100% of the value of the hidden property. This depends on the circumstance and nature of the failure to disclose.
6. Gathering Key Evidence before filing divorce
It is crucial that individuals seeking to file for a divorce to collect evidence before the split. This can include taking pictures, writing down important numbers and making copies of account statements.
7. Getting the properties valued before the divorce filling
It is impossible for spouses to get fair shares if they are not aware of the exact value of their property specially when it comes to selling their San Antonio home. Having the property valued beforehand is the best way to go.
What is Commingling?
Commingling is when the separate property become a community property in a situation when the separate property is mixed with the community property is such a manner one cannot tell the difference. For instance, in a situation where the spouse has deposited the inheritance in a joint account that is used by the couple to cover monthly expenses, deposit paychecks, or buy a community property.
Support of the spouse
In Texas, alimony is not recognized, but it has spousal support. Meaning, the money paid by one spouse to support the other. Texas’ courts have no authority in ordering alimony paid at the divorce settlement. The legislation, however, allows for limited alimony in cases when the spouse is unable to support himself or herself. The limited alimony is also applicable when the parties, by agreement provide for alimony at the divorce conclusion. The alimony can be deducted from the spouse’s income for tax gain, and the alimony recipients are obligated to declare it as an income.
Get Assisted in House Selling
When you need to sell a house after a divorce, you can contact us by phone or send an email. We are cash buyers of houses in San Antonio, Texas. We can do all-cash offers and we are a fast and reliable house dealers. Visit our website for more information and do not hesitate to ask us any question you may have regarding the sale of your house.